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Fuel, Oil and Gas Supply: Energy Commodities

From diesel for generators to LP Gas for hospitals. The energy sector is high-volume but requires wholesale licensing.

Fuel, Oil and Gas Supply: Energy Commodities

Government consumes massive amounts of energy. Hospitals need steam (coal/gas) and backup power (diesel). Municipal fleets need petrol.

1. Wholesale Diesel Supply

  • Licensing: You must hold a Wholesale License from the Department of Mineral Resources and Energy (DMRE). You cannot bid without it.
  • Depot: Do you have a depot or are you collecting from the refinery (Sasol/Engen/Shell)?
  • Price: Regulated. Margins are fixed or very slim. Profit depends on volume and transport efficiency.

2. LP Gas (LPG)

  • Bulk vs Cylinder: Hospitals often have bulk tanks. Clinics need cylinders (9kg/19kg/48kg).
  • Safety: Installers and suppliers must be LPGSA registered. Transporting gas requires dangerous goods permits.

3. Lubricants

  • Oils and Greases: For vehicle fleets and water treatment plant machinery.
  • Spec: Must meet manufacturer specs (e.g., 15W40 CI-4).

4. Coal

  • Usage: Prisons and older hospitals often use coal-fired boilers for cooking and steam.
  • Grading: Peas, nuts, duff. The calorific value (CV) is tested. Bad coal = penalties.

Conclusion

This is a volume game with high working capital requirements (fuel loads are cash on order at the refinery). Ensure your licensing (DMRE) is sorted before you start.

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Fuel, Oil and Gas Supply: Energy Commodities

From diesel for generators to LP Gas for hospitals. The energy sector is high-volume but requires wholesale licensing.

https://www.tenders-sa.org/blog/fuel-oil-gas-supply-energy-commodities